Solar Panel Cost in South Carolina (2026 Estimate)

BySunMetricLab Editorial Team·Independent solar research and calculators

Data last updated September 10, 2026 · ranks #18 of 50 states for modeled payback

South Carolina averages about 4.8 peak sun hours a day (about average for the US) with an approximate residential electricity rate near 14¢/kWh, on the lower end nationally. In the model used here, an 8 kW system in South Carolina produces roughly 11,210 kWh a year and trims about $1,600 off annual electricity costs, paying back its net cost in about 9.6 years. That is a middle-of-the-pack payback, so whether solar is worth it in South Carolina often comes down to your specific rate, roof, and any state or utility incentives.

Estimated system cost and payback in South Carolina

Costs assume roughly $2.70/watt installed for South Carolina; the net column applies a 30% federal credit for comparison with quotes that include it. Savings and payback use the state's sun hours and rate above.

The 30% federal Residential Clean Energy Credit ended for systems paid for after December 31, 2025 under the 2025 federal budget law. Net-after-credit figures apply only if you still qualify (for example a 2025 expenditure, or a leased system where the installer passes a credit through). Confirm with a tax professional.

What moves the numbers in South Carolina

Two inputs drive most of the difference between states: how much sun a system sees and what each offset kilowatt-hour is worth. South Carolina's 4.8 sun hours set production, and its roughly 14¢/kWh rate sets what that production saves. The bigger unknowns are your roof, shading, and how your utility compensates exported power, since a lower export rate can pull real savings below the retail-rate figure above.

Net metering and export credits in South Carolina

South Carolina's Energy Freedom Act of 2019 replaced legacy retail net metering with what Duke Energy and Dominion Energy South Carolina call Solar Choice metering, which applies to customers who interconnected from mid-2021 onward. Under Solar Choice you are placed on a time-of-use rate, production is netted against consumption within each pricing period, and any exported energy left over is credited at an avoided-cost rate well below retail. A minimum monthly bill and non-bypassable charges apply, and Duke adds a small grid access fee for larger systems.

Households that enrolled under the earlier one-for-one net metering rules were grandfathered for a fixed period rather than switched immediately. Santee Cooper and the electric cooperatives, which are outside Public Service Commission jurisdiction, have their own distributed generation rates, several of which also credit exports at avoided cost. Ask for the exact tariff sheet from your utility, since credit values are updated periodically.

South Carolina solar incentives beyond the federal credit

South Carolina offers one of the larger state tax credits still available: 25% of system cost against state income tax, limited to $3,500 per year or half your tax liability, whichever is less, with unused credit carried forward for up to 10 years. The credit is claimed on Department of Revenue form TC-38 and applies to solar water heating and small wind as well.

Residential solar systems of 20 kW or less are exempt from property tax under state law, so the array does not raise your county assessment. There is no state sales tax exemption or statewide rebate; some cooperatives and Santee Cooper have offered rebates on and off, and Duke has occasionally extended battery incentive programs into South Carolina, so ask what is open this year.

Utilities and rate plans in South Carolina

Duke Energy Carolinas serves Greenville, Spartanburg and the Upstate, Duke Energy Progress covers Florence and the Pee Dee, Dominion Energy South Carolina (formerly SCE&G) serves Columbia, Charleston and Aiken, and state-owned Santee Cooper serves the Grand Strand and Berkeley County while supplying the 20 cooperatives that cover most rural territory. Retail rates are close to the national average, but the time-of-use structure under Solar Choice means the value of a solar kilowatt-hour depends heavily on when it is used: midday production offsets cheaper off-peak power, while the pricey evening peak arrives after output falls. A battery or shifting flexible loads into the afternoon makes a larger difference here than in flat-rate states.